Daily Market Update 04/09/12

GOLD

Last Wednesday, after the Federal Reserve’s minutes were released showing that it was unlikely that a new round of stimulus (QE3) will be coming soon, both the stock market and gold sold off dramatically. This morning, April 9th, the market reacted to Friday’s disappointing employment report, and again the stock market reacted negatively, while at 11am PDT Gold is up $14.00 per ounce, trading at $1,645.60 on excellent volume. It is clear that a QE3 will be bullish for gold. However, what is bullish for the stock market, if it reacts negatively to both good and bad economic reports?

China’s inflation accelerated more than forecast in March on a pickup in food prices. Consumer prices rose 3.6 percent from a year earlier, the National Bureau of Statistics said today. Food-related costs gained 7.5 percent.

SILVER

Silver is trading today in a narrow range, with a high of $32.18 and a low of $31.51. At 11am PDT today Silver is trading at $31.80, up $0.09 per ounce on active volume.  European markets are closed for the holiday, but many Asian markets show excellent physical demand. The Indian Jewelers brought their 3-week long strike to an end on April 7th, and the Gold and Silver buying resumed. India’s jewelers were assured that the government would consider scrapping a budget proposal to levy excise duty on unbranded gold & silver jewelry.